What Insurance Do Independent Contractors Need?

As an independent contractor, financially protecting your business and reputation is essential. At Global Insurance and Services, we understand that navigating insurance options can be overwhelming, especially when you’re responsible for your own coverage. Our team is here to help you identify the right insurance solutions to safeguard your work, your clients, and your future.

Understanding Essential Insurance Coverages

Independent contractors face unique risks, and the right insurance can make all the difference. Here are some of the most important coverages to consider:

• General liability insurance—This coverage can cover you if a third party claims you caused their property damage, bodily injury or personal injury while performing your work. Clients often require proof of liability insurance before hiring contractors, making it a foundational policy for many in this sector.
• Professional liability insurance—Also known as errors and omissions insurance, these policies can help cover claims related to possible inadequacies in your work, such as mistakes, missed deadlines, negligence or other alleged shortcomings. It may be especially important for consultants, designers and independent entities providing specialized advice or services.
• Workers’ compensation insurance—Although in Alabama, independent contractors are not typically required to carry workers’ compensation coverage for themselves, if you hire employees or subcontractors, you may be legally obligated to provide this coverage. It can also be a valuable financial safeguard in response to employees’ work-related injuries and illnesses.
• Commercial auto insurance—If you use a vehicle for business purposes, personal auto insurance is typically not sufficient. Commercial auto insurance can help cover accidents, property damage and liability while driving for work, and may even be legally required if you’re using a personal vehicle for business reasons.
• Inland marine insurance—This type of insurance can be critical for financially protecting business equipment, machinery, tools and inventory while being transported to, or stored at, a job site.

How Our Team Can Help

Contact us today to discuss your contractor insurance needs.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.